Renting a second property — Scope | Disability forum
If we become concerned about you or anyone else while using one of our services, we will act in line with our safeguarding policy and procedures. This may involve sharing this information with relevant authorities to ensure we comply with our policies and legal obligations.

Find out how to let us know if you're concerned about another member's safety.
Please read our updated community house rules and community guidelines.

Renting a second property

lexi101
lexi101 Community member Posts: 2 Listener
Hello there I am trying to understand the rules regarding letting a second property. I thought that letting one property was considered  to be investment income - which would affect income based ESA but not contributory based ESA. I understood that it would not be considered to be work if a lettings agency undertook the management of the property. I have seen a thread on another forum in which someone thought the same but he had received a letter from the DWP stating that he was in breach of the ESA rules because the income derived from letting is over the permitted work entitlement earnings threshold. This suggests that the DWP would see this as work. The thread is a year old and I have not been able to contact the person to see what happened. I'm very confused as benefit helplines have suggested it should be considered as investment income. Has anyone been in the same situation or do you have any knowledge of this? Many thanks

Comments

  • calcotti
    calcotti Community member Posts: 10,010 Disability Gamechanger
    DMG Volume 9 Chapter 50: Self-employed earners (publishing.service.gov.uk)
    Renting out property as a business
    50425 If a person is letting properties that are not the home, the DM needs to consider if this is by way of a business.

    50426 A person who
    1. has a single property that is not the home and
    2. lets the property to tenants and
    3. collects rents and does any repairs
    is not conducting a business. The property is primarily an investment. See DMG Chapter 51 for the treatment of rental income. 
    So the guidance says a DM must decide and then makes clear that letting one property will not be treated as a business. It doesn't say that two properties will be treated as a business but clearly this is, by implication, a possibility. A DM will decide. 


    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • lexi101
    lexi101 Community member Posts: 2 Listener

    Thank you so much for your reply it is really appreciated . It is  so helpful to have the reference to the DMG so that I can refer to it
    if needed. With very best wishes 

Brightness

Complete our feedback form and tell us how we can make the community better.

Do you need advice on your energy costs?


Scope’s Disability Energy Support service is open to any disabled household in England or Wales in which one or more disabled people live. You can get free advice from an expert adviser on managing energy debt, switching tariffs, contacting your supplier and more. Find out more information by visiting our
Disability Energy Support webpage.